Why did Sin City Cultivation, Inc. choose to launch operations in Las Vegas? Simple. It’s Las Vegas. Already coined “the future cannabis capital of the world,” Las Vegas has shown a commitment to its philosophy that “excess is best.” Legislative initiatives planned for the 2016 ballot are definitely marijuana friendly. Las Vegas already has some of the most aggressive medical marijuana laws in the nation as well, accepting reciprocity of use for medical marijuana cards. In fact, Nevada will be the only state to service and accommodate out-of-state medical marijuana patients who can simply fill out a form at any local dispensary prior to purchase. To further illustrate the potential of the cannabis market in Las Vegas, there are currently over 500 dispensaries in the state of California serving an equivalent population of 40 million residents. Annual statewide revenue is at $1.3B. In comparison, the potential demand for marijuana from 45 million Las Vegas tourists annually would have to be met by 40 authorized dispensaries and the associated supply chain. Product pricing would certainly have to be inflated accordingly.
Growth of medical marijuana in Nevada is certain, and estimated by the Nevada Department of Public and Behavioral Health (DPBH) to include 68,922 registered local patients. DPBH estimates 459,130 pounds of cannabis must be harvested annually to support demand of flower and infused products. That means there would be a $803 million annual market for wholesale flower cultivation—and that doesn’t account for the recreational market.
Nevada’s new medical marijuana industry can be closest compared to that of Arizona in both implementation and regulatory structure. However, Nevada has no restrictions on cultivation quantity based upon patient counts, which is unique. This means that we can cultivate for maximum production using one cultivation license. Since the retail market is strictly medical and not recreational, this will drive wholesale prices to between $3,000 and $3,500 per pound. If Nevada matches Arizona in year one, it can expect a 400% growth rate, as well as the additional profit potential from Nevada’s for-profit legal structure.
With the expected passing of legislation allowing for recreational use and the reciprocity laws enabling tourist consumption in place already, the Las Vegas market could easily be the most lucrative marijuana marketplace in the nation. We are looking for partners to get in the game now to share in this limitless profit potential.